Lendlease is breaking new territory in China’s growing retirement market with a $400 million retirement village in Shanghai.
The move makes the property developer the first foreign company to operate in the aged care sector without a local partner.
Lendlease will own and control the site having signed a 50-year land usage contract with the Qingpu government to develop and operate a 900-unit retirement village.
With construction planned to be completed in 2021, Lendlease will offer a membership model that allows for residents to purchase long term membership rights that are transferrable.
Related reading: Lendlease Announce Partnership to Develop Aged-Care in Brisbane
Shanghai, China’s largest city, is also home to the country’s oldest population with an estimated 5.4 million of the total population to be aged over 60 by 2020.
Government policy has changed in the past five years, and Chinese President Xi Jinping has recognised aged care as one of the industries he wanted to open up to more foreign investment.
The elderly have traditionally lived with their children in China, however Lendlease identified a growing demand for western-style aged care services with Chinese citizens growing up under the One Child Policy able to afford a higher standard of living.
The project, estimated to have an end value of $400 million, will comprise of gardens, recreation areas, and health and wellbeing facilities.
Related reading: Integrated Aged Care Towers Proposed in Woolloongabba
Lendlease has been operating in China since the early 1990s, with a long track record in Asia commencing operations in 1973.
According to their market brief Asia, released today, Lendlease’s $4.3 billion of assets under management include the Parkway Parade in Singapore, 313@Somerset Singapore, Jem in Singapore and Setia City Mall, Malaysia.
The global construction and development giant also manages 70 retirement villages across Australia.
